When the leaders of France and the European Commission met Chinese President Xi Jinping for talks Monday at the Elysee Palace in Paris, they had a strong message for him: Beijing must reduce its support for Moscow.
As Russia makes gains in its invasion of Ukraine, French President Emmanuel Macron and commission chief Ursula von der Leyen told the Chinese leader that he needs to do more to curtail the transfer of dual-use materials to Moscow that are finding their way onto the battlefield.
“Given the existential nature of the threats stemming from this war for both Ukraine and Europe, this does affect EU-China relations,” said von der Leyen following a trilateral meeting with Xi, who is on his first state visit to Europe in five years.
The warnings are in line with those by the United States, which has accused China of “funding the greatest threat to European security since the end of the Cold War” by providing Russia with machines, semiconductors and other items that have helped it “largely reconstitute its defense industrial base.”
But unlike Washington, which just last week rolled out new sanctions against several Chinese entities accused of supporting Moscow, Europe seems to have left it at a verbal warning.
“We count on China to use all its influence on Russia to end Russia's war of aggression against Ukraine," von der Leyen said.
But while Xi reiterated Beijing’s commitment not to sell arms to Russia, he bristled at Western criticism, saying that China did not start the war, nor is it a party to or participant in it.
He also rejected what he described as “attempts to use the Ukraine crisis to scapegoat or smear a third country or to stoke a new Cold War.”
Instead, the Chinese leader urged France to “uphold independence” and jointly prevent bloc confrontation as the two countries celebrate the 60th anniversary of diplomatic ties this year.
“The two sides should take a long view and work together for an equal and orderly multipolar world,” Xi said, calling on Paris to “oppose decoupling, cutting off supply chains or erecting walls and barriers.”
However, it seems little immediate progress was made in Europe’s efforts to make trade relations more balanced amid a trade deficit that has ballooned to more than $400 billion — a situation Brussels views as “unsustainable.”
The main factors behind China’s massive trade surplus, EU officials said, involve a lack of market access for European companies, Beijing’s preferential treatment of domestic firms, along with subsidies and manufacturing overcapacity in China for products such as steel that have flooded foreign markets.
“Europe cannot accept market-distorting practices that could lead to deindustrialization here at home,” von der Leyen said, adding that the continent will “defend” its companies and economies, and “will not waver from making tough decisions.”
Ian Chong, a professor at the National University of Singapore, said many European firms see Chinese electric vehicle and green energy subsidies as damaging their commercial interests.
“Then there is Beijing’s control of rare earth supplies, which could put further pressure on European battery producers,” he said.
As a result, Brussels launched in October an anti-subsidy probe into EV imports from China, arguing that their prices are being “kept artificially low” owing to “huge state subsidies.” Late last month, the EU also launched its first investigation into the public procurement market in China for medical devices. Both moves have been met with criticism by Beijing.
Brussels has also said it intends to “de-risk” economic ties with Beijing to reduce “excessive dependencies” and increase supply chain resilience.
Experts say these measures could provide Europe with some leverage in the trade relationship, particularly as the Chinese economy faces difficulties as a result of U.S. restrictions.
The main challenge for the EU, however, is whether it can overcome its divisions among member states on how to deal with China.
“While the EU has devised several tools to increase its economic resilience, the appetite to use them actively varies from capital to capital,” said Alicja Bachulska, a policy fellow at the European Council on Foreign Relations. Germany, for instance, “does not seem ready to address the questions of China’s industrial overcapacity head-on.”
Beijing knows this, which is why, in all likelihood, it will continue to seek cooperation with individual European countries.
Nevertheless, experts such as Marc Julienne of the French Institute of International Relations, said that Monday’s trilateral meeting sent a message to Xi that dealing with EU member states also means dealing with Brussels.
“Macron has always been very consistent in placing his bilateral relationship with China within the broader framework of the EU, and this is not something Xi is happy with,” he said.
Despite diverging on those issues, the two leaders saw eye to eye on others, including the conflict in the Gaza Strip, with both stressing the need for an “immediate and lasting cease-fire” to allow for the large-scale delivery of humanitarian aid.
The two sides, which signed almost 20 bilateral cooperation agreements, also called for a global truce during the Olympic Games in Paris this summer.
“China will work with France to advocate ... a cessation of hostilities around the world during the Games,” Xi said.
On Tuesday, the Chinese leader was set to hold less-formal talks with Macron in France's Pyrenees mountains before traveling to Serbia and Hungary, two countries that share close economic and political ties with China.
Xi is expected to welcome Russian President Vladimir Putin for talks in Beijing later this month.
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